Invest In Forex Exchange For Profit in Nigeria infomediaNG

6 Ways To Invest In U.S. Stocks With As Low As $10 From Nigeria

Last Updated on January 6, 2022 by Ope Quadri

Some years back, an investor had to locate a stock broker, fill forms, and wait till the end of the financial year to receive dividend which were usually delivered through the postal service. It was even more difficult to invest in foreign stock back then. Today, that has changed, FinTech has simplified foreign investments and cross-border securities transactions.

You can now buy stocks, Exchange Traded Fund (ETFs), and Real Estate Investment Trusts (REITs) among others right on your phone. Not just that, you can also monitor the performance of your portfolio real time: anywhere and any time with a browsing data-enabled device.

So, how can you invest in profitable companies in the United States right from Nigeria? You don’t need to hold U.S. passport neither do you need to be a U.S. citizen to buy shares in U.S-based companies.

What are stocks?

Also known as shares, equities, stocks gives you a say, voting and a portion of ownership in a company, meaning you take a portion of the company’s profit at the end of a financial year.

The profit could be inform of cash which is credited into your wallet (depending how how the platform is designed)  bonus shares, and increasing value.

Is it safe to invest in foreign stocks from Nigeria?

The first thing to do before buying share in any company is to check the integrity and the legitimacy of such firm if it has the required licence to carry out business.

Sometimes in May 2021, the Securities and Exchange Commission (SEC) said it was monitoring brokers that sell foreign stocks in Nigeria.

The commission has the capacity to monitor and regulate stocks operating within Nigeria’s jurisdiction, as such it has the power to licence firms that offer foreign stocks to Nigeria.

SEC’s Executive Commissioner of Operations, Mr Dayo Obisan, was quoted in an interview with Bloomberg as saying that there are rules on foreign investments.

“Broadly speaking, all capital market instruments are registrable – equities, bonds, units of investment funds, derivatives, etc.”

It’s also important to carry out a personal due diligence, ask questions, dig into the operations and activities of the investment brokers or partners.

We noticed that some of the firms that offer foreign stocks and investment services in Nigeria do so by partnering with U.S-based brokers.

Caution:

Investing in stocks isn’t a get rich quick scheme. And carefully read the Terms and Conditions of the company involved.

6 Investment Companies That Allow You To Buy Foreign Shares From Nigeria

Out of the six stock-buying apps below, one of them is based in the United States of America while the rest are Nigerian-based and are registered by the Corporate Affairs Commission (CAC), licenced by the Nigerian Stocks Exchange (NSE) and also regulated by SEC.

These are the ways to gain access to global and foreign shares in Nigeria:

  • Wealth NG
  • Trove
  • Bamboo
  • Rise Capital
  • Chaka
  • Passfolio

WealthNG

One of the recent questions we received from some one of our readers is: Is wealthNG a legitimate investment company? The answer is YES.

Headquartered at 33B, Cameron Road, off Alfred Rewane, Ikoyi, Lagos, Nigeria, WealthNG is owned by the founder of Sankore Securities Limited, a stock brokerage firm in Lagos, Mrs Titi Odunfa.

It is one of the companies that incorporated technology into stock trading locally like purchasing shares in Dangote, UBA, GTCo and others Nigerian companies, some of its products include ETFs, REITs, but it has stepped up its game by including foreign stocks.

What we like about Wealth NG

Its app is easy to use as it gives users access to global stocks and when there is a change in price, they can easily get the information right on wealthNG app.

Its mode of funding your wallet Flutterwave is safe and secured

Trove:

With access to stocks of big players like Uber, Facebook, Dangote, Netflix, and Apple among others, trove is one of the legitimate foreign investment apps based at 18b Oladimeji Alo Street off Freedom Way, Lekki, Lagos State, that give you access to global stock trading.

What we love about trove:

Its minimum investment is affordable as it gives everyone that wants to plan for the future to do so as low as $10, meaning you can start with less than N5,000. This is called fractional investing.

Is trove legit?

The firm isn’t a registered broker-dealer rather a technology platform, it only works with registered stock brokerage companies in the United States and Nigeria.

From this declaration, one may want to exercise caution, but this disclosure is expected of an investment platform. It’s legit, above all, investing involves risk, invest wisely.

InvestBamboo

With opportunity to buy shares in Paypal, Facebook, Tesla, HP, and Facebook among other 300 foreign stocks, InvestBamboo is one of the firms that redefined how Nigerians see global stocks.

With the opportunity to fund your account in either Naira or US Dollar, you can choose which stock you want to buy. Most of the people who use this app said they prefer the USD account because it allows to avoid the falling value of the Nigerian currency.

What we love about bamboo investment app

First, the company had undergone several scrutiny from NSE, SEC, and the Central Bank of Nigeria (CBN) relating to foreign currency infraction, it was able to cross the hurdle.

While investors may be afraid, at InfomediaNG, we believe this is fine and creates more credibility for the company that its platform is legit.

Apart from the verification process that is carried out on prospective investors through BVN, the ability to track my portfolio makes it cool.

Above all, you don’t need to be an expert, it’s created with an inclusiveness goal. In fact, you can start small and grow big as you gain more confidence.

Rise capital

With access to Google shares, Alibaba stocks among others, rise capital, has done more than half of the job by ensuring that only US stocks that have long-term growth are listed, but then no one can predict the outcome of an investment 100%, meaning you should also be cautious.

On the platform are other investment like real estate which could yield 15% per year, this means you could spread your portfolio.  For instance, put 40% of your money in stocks, 40% in real estate

What we love about rise capital

Some of the guides provide on the platform makes it a good platform for a beginner to start.

Chaka

Apart from being the fist investment firm to obtain FinTech licence from the Security Exchange Commission, its US dollar assets are regulated by the US FINRA and the US SEC.

What we love about chaka

Recommendations for traders and investors by its qualified professionals. And its minimum investment of $10 or less than N5,000 or N1000 if you’re buying local stocks makes it accessible.

Passfolio

While chaka, wealth.ng, bamboo are specifically designed to give Nigerians access to invest in U.S. and Chinese shares, Passfolio Financial is more global than the aforementioned ones as it allows close to 200 countries to by buy shares in the United States.

The San Francisco-based FinTech investment firm gives cryptocurrency enthusiasts to fund their accounts by using cryptos.

What we love about Passfolio Financial

Some people may be constrained due to trans-border transaction laws, so they can first fund their accounts using cryptocurrencies which can then be converted into dollars through Passfolio Financial, then moving the dollar proceeds to their brokerage accounts at Passfolio Securities, where users are then able to buy securities.

If you can’t use buy cryptocurrency through your bank, debit or credit card, there are more than 10 peer-to-peer platforms you can use to fund your passfolio

To even explore the advanced features, you can subscribe for Passfolio Pro and gain access to features as Margin Trading, and Advanced Orders among others.

Wrapping up:

There is no limitation to the number of stocks you can buy anymore. There can’t be anything easier than to sit in the comfort of your home and monitor your shares in the United States.

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